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English definition of “cost-of-living allowance”

cost-of-living allowance

noun [C usually singular] uk   us  
an amount of money that an employee gets in addition to his or her normal pay, because the cost of living in a particular area is high: Nurses working in the capital receive an additional 7.5 percent cost-of-living allowance.
(Definition of cost-of-living allowance from the Cambridge Advanced Learners Dictionary & Thesaurus © Cambridge University Press)
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